Pakistan releases statement after India and EU announce ‘mother of all trade deals’
In a recent development, India and the European Union (EU) have announced a landmark trade agreement, dubbed the “mother of all trade deals”. This move has sent ripples across the globe, with many countries taking notice of the potential implications of this agreement. Pakistan, in particular, has been watching the situation closely, given its own trade relations with the EU. In a statement released by the Pakistani government, it was clear that the country is aware of the agreement and is taking steps to safeguard its own interests.
According to the statement, “We are aware of this agreement. We have seen reports and as well as the content.” This indicates that Pakistan is closely monitoring the situation and is aware of the potential implications of the India-EU trade deal. The statement further added, “Pakistan maintains long standing friendly relations with EU…The EU GSP+ scheme for Pakistan has proven to be a win-win for bilateral cooperation…The total volume between our two sides stands at €12 billion.” This suggests that Pakistan values its trade relationship with the EU and is keen to maintain and strengthen it.
The EU’s Generalized System of Preferences Plus (GSP+) scheme is a preferential trade arrangement that provides tariff concessions to certain countries, including Pakistan. The scheme aims to promote economic development and good governance in these countries. Pakistan has been a beneficiary of the GSP+ scheme since 2014, and it has significantly boosted the country’s exports to the EU. The total trade volume between Pakistan and the EU stands at €12 billion, with Pakistani exports to the EU totaling around €6.5 billion.
However, with the India-EU trade deal on the horizon, Pakistan is concerned that its GSP+ tariff edge may be eroded. The Indian government has been negotiating a free trade agreement (FTA) with the EU, which could potentially give Indian exporters preferential access to the EU market. This could lead to a loss of market share for Pakistani exporters, who have been benefiting from the GSP+ scheme. To mitigate this risk, Pakistan has engaged with the EU to safeguard its exports and ensure that its trade interests are protected.
The Pakistani government has been in talks with EU officials to discuss the potential implications of the India-EU trade deal on Pakistan’s trade with the EU. Pakistan is seeking assurances from the EU that its GSP+ benefits will not be affected by the new trade agreement with India. The EU, on the other hand, has assured Pakistan that it values its trade relationship with the country and is committed to maintaining the GSP+ scheme.
The India-EU trade deal is expected to be a comprehensive agreement that covers a wide range of sectors, including textiles, leather, and agricultural products. The agreement is likely to reduce tariffs and other trade barriers, making it easier for Indian exporters to access the EU market. However, the agreement may also have implications for other countries, including Pakistan, that have trade relationships with the EU.
In conclusion, Pakistan has released a statement in response to the India-EU trade deal, expressing its awareness of the agreement and its potential implications. Pakistan values its trade relationship with the EU and is seeking to safeguard its exports and maintain its GSP+ benefits. The country is engaging with the EU to discuss the potential implications of the India-EU trade deal and to ensure that its trade interests are protected. As the situation unfolds, it will be interesting to see how Pakistan navigates this new trade landscape and maintains its trade relationships with the EU.
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